How Can Customer Communications Management (CCM) Software Benefit Life Insurers?
By Eileen Potter, VP of Insurance Marketing at Smart Communications
Given today's competitive market, having an effective customer communications strategy is a strategic imperative for life insurers. While that might sound a bit dramatic, consumers nowadays have an abundance of options—and a willingness to jump ship even after one bad experience with a brand they like.
With so many customer touchpoints to account for, creating a personalized member journey packed with clarity and ease may be difficult without leading customer communications management software at the helm of your technology stack.
This article explores these topics and provides insights to business and technology leaders in charge of claims, policies, and customer experience. The valuable information we delve into is truly for anyone who’s part of the buying or innovation committees for new technology vendors.
The Evolving Landscape of Life Insurance
We’re keenly aware that advancements in technology have not only shaped customer expectations but have also opened new avenues for enhanced communications that provide consumers with an abundance of information—potentially too much information. When a customer is facing what could be a critical moment in their life, they need pertinent information and clear responses to their pressing questions. Even in the not-so-crucial moments, timely and succinct communications remain key to building trust and confidence in your brand. In fact, new benchmark data shows that the most important factors for establishing trust are security, ease, transparency, and empathy.
When thinking about the evolution taking place across the life insurance market, a few insights that keep coming up are:
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The growing need for consumer education in order to help people make informed decisions about their coverage options and insurance needs. When equipped with modern CCM solutions, insurance professionals can truly become a trusted advisor in empowering consumers to make the right decisions for their unique situation.
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An increasing demand for personalized coverage options for term life, whole life, and universal life insurance, that can be adjusted to meet a consumer’s financial and family goals.
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The emphasis on life insurance as part of a holistic financial planning strategy. This means consumers are looking for policies that provide more than just death benefits. They want additional features like tax advantages, investment opportunities, and cash value accumulation.
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The shifting regulatory landscape that’s apt to remain in flux for the foreseeable future. Life insurance markets are especially subject to changes in regulatory requirements which can directly impact underwriting processes, distribution channels, and offerings.
While there’s undoubtedly more change to come for life insurers, let’s look at how you can account and plan for the evolution.
How Does Effective Customer Communications Improve Policy Management and Claims Processing?
Effective, personalized communication enhances customer satisfaction, reduces errors, and streamlines the overall process when a consumer has a coverage question, makes policy changes or files a claim. Here's a few ways customer communications management technology improves policy management as well as claims processing:
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Clear Communication of policy terms. When customers understand their insurance policy terms, coverages, and limitations clearly, they're less likely to make mistakes or misunderstand their coverage. Clear communication at the time of policy issuance helps avoid disputes later and ensures that customers know what to expect in the event of a claim.
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Transparent claims procedures. Effective communication ensures that customers are aware of the claims process, including how to file a claim, required documentation, and expected timelines for resolution. Transparent claims procedures foster trust between the insurer and the policyholder, leading to smoother claims processing and quicker resolutions.
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Faster claims processing. When customers submit all necessary information and documentation accurately from the beginning, it reduces the back-and-forth communication between the insurer and the policyholder. This efficiency results in faster claims processing, benefiting both parties.
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Reduced disputes/litigation. If there is a claim denial or disagreement, clear communication can help resolve issues between the customer and your company through mediation or arbitration rather than leading to costly and time-consuming legal battles.
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Personalized interactions. Utilizing customer communication channels effectively allows your insurance organization to tailor its messaging to individual policyholders. Personalized interactions demonstrate that the customer is valued and known as an individual, strengthening the customer-insurer relationship.
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Data collection for analytics. Customer communications can also be a source of valuable data for insurers. By analyzing customer inquiries, feedback, and behavior, insurers can gain insights into customer needs, pain points, and preferences, enabling them to optimize their services and offerings.
By delivering personalized, timely, and relevant information, insurance companies can build stronger relationships with their customers, leading to improved loyalty and retention. On the other hand, poor customer communications can have severe consequences, impacting policy management and the claims lifecycle—even leading customers to switch to your competitor.
Key Advantages of Cloud-Based Customer Communications for Life Insurance Providers
Cloud-based CCM software offers numerous benefits over traditional legacy systems or the absence of one entirely. Some of the main advantages include:
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Increased agility. Cloud-based CCM solutions allow insurers to respond to changing regulatory requirements with more speed and flexibility.
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Enhanced customer engagement. Cloud-based solutions enable personalized communications across multiple channels, providing your customers with tailored experiences and building stronger connections. This is an absolute must-have feature for today’s savvy customers.
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Document delivery and management. The right CCM software helps you automate the delivery and management of policy documents, reducing manual effort while improving accuracy and ensuring compliance.
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Omnichannel capabilities. Solutions that specialize in managing customer interactions offer a seamless experience across multiple channels, including email, web portals, mobile apps, and social media. This helps empower your customers by allowing them to choose their preferred method of communication.
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Streamlined policy management and claims processing. CCM software streamlines policy management and claims processing by automating workflows, reducing paperwork, and improving efficiency, leading to faster turnaround times.
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Cost savings and ROI. Implementing cloud-based software can result in cost savings through reduced printing and mailing expenses, improved operational efficiency, and increased customer satisfaction. All of these benefits ultimately yield a positive return on investment.
Every touchpoint in the life insurance journey matters. From the moment someone considers purchasing a policy to the regular updates and policy reviews, each interaction should be seamless and meaningful. As technology and customer expectations evolve, insurers should also refine their processes and technological capabilities.
This might start with things like leveraging data analytics to better understand your customers' needs or simply ensuring that communications are sent to a customer's preferred channel every time. Whatever changes you intend to make, research supports a shift to cloud technologies that help insurance organizations offer more security and agility to their customers.
Adapting to Changing Customer Expectations with CCM Software
Over the last several years, we’ve all learned much about adapting to change. For an industry aimed at helping its customers with transitions, life insurance companies need to be at the top of their game in regard to adaptation. Luckily, leading CCM software can help make lighter work of becoming an agile, customer-centric organization. From shifting policyholder behaviors/expectations to keeping up with changing regulations or compliance requirements, life insurance leaders need to be poised for evolution especially in the realm of their technology stack.
A study by multinational professional services network, KPMG, published a report that leveraged research data collected by Forrester Consulting that explored input from more than 425 L&A industry decision-makers in July 2022. The report specifically stresses the need for insurers to be at the forefront of transparency and trust in an effort to prevent the mishandling of customer data. This, as well as ESG considerations, further showcases the importance for customer communications software that allows insurers to not only protect sensitive customer data but to give consumers more ownership over how their data is collected and used.
Speaking of data and the way it’s used; insurers can do more with the information they collect throughout the customer journey. Open channels of communication allow customers to provide feedback on their experiences with the policy management and claims process. Insurers can use this feedback to identify areas for improvement, refine their processes, and enhance customer satisfaction.
Conclusion
With the right solutions and approach, your life insurance organization can stay ahead of the competition and meet evolving demands from regulators and customers alike. By embracing technology and prioritizing effective customer communication, you can drive success in the ever-evolving markets.